Investors

Eltechs, Inc. is a software company, which is developing a virtualization solution that uses binary translation technology to convert Intel-based allocations in runtime to code, suitable for ARM CPUs. If you would like to know more about our investor relations or are looking for a high-tech company to invest in, we will be happy to hear from you! Write us directly to infoxeltechszcom and we get back to you as soon as possible!

In order to get an idea about our company and what we do very fast before going into details, we suggest watching our short represent video that prepared on completing the YCombianor StartUp School acceleration course

Market Overview

The size of the server hardware market we operate for is $56B and its growth is accelerating.

The major trend on this market is “green technology” that incorporates power and cost efficiency, along with high density. This trend formed new type of servers called microservers. This type of servers is able to cut costs of data centers and cloud providers by up to 80%. This technology is implemented in a new type of energy-efficient (ARM-based) servers emerging on the market.

For example, using power-efficient ARM servers helped the Chinese search giant Baidu decrease its total cost of ownership by 25%!

What Do We Mean by “Cutting Costs”?

ARM servers are the perfect solution for the companies that want to cut down costs also known as total cost of ownership (TCO). These costs include expenses on power and cooling equipment, electricity, service (which together compound around 80% of all costs), space, improvements and racks.

HP Moonshot Project showed in practice the efficiency of microservers when compared to the standard PC. Using a power-efficient architecture and integration of peripherals (video, networking, storage etc.) on one CPU enabled ARM servers to be extremely efficient. They barely take any space, use 89% less energy, drastically decrease complexity and cut down the cost of services by more than a half.

The Next Big “Thing” in the Server Hardware

Major hardware vendors like Dell and HP are taking advantage of power-efficient servers by developing respective solutions. Along with these giants, a number of smaller hardware vendors such as Boston and MiTAC introduced their first power-efficient servers in early 2013. Several other major firms are looking to enter the market, with Qualcomm, Calxeda, Marvell, Samsung, Nvidia and many others are developing power-efficient ARM CPUs. Meanwhile, software giants like Red Hat and Canonical are supporting movement with the operational system capable of running on these servers.

Global Market Estimate

The mircoserver market is growing rapidly due to the demands of data centers. According to the research firm iSuppli, shipments of microservers will more than triple in 2013, to an estimated 291,000 units. By comparison, shipments in 2012 totaled 88,000 units. According to the forecast shipments of microservers will reach 1.2M units, which is more than 10% of server hardware market.

The Problem

ARM servers provide exceptional opportunities for cost-performance to enterprises of almost every kind.

The drawback, until now, has been the lack of software designed for them. The vast majority of software developed over the last couple of decades, in nearly every field, was developed for standard PC (Intel) architecture. This software is incompatible with newer, ARM architecture — approximately 80% of existing software cannot be run on ARM-based servers.

Thus, there is a great demand for running ARM server non-applicable software. We are a unique company that at this moment meets this demand.

Product Description

Our product enables ARM servers to run practically any kind of software designed for standard Intel-based servers. It is designed for cloud providers and data center owners looking to drive down costs by taking advantage of the energy-efficient architecture of ARM servers, without losing the ability to run the standard, PC software that are accustomed to. We believe, that high performance, reliability and ease of use of Eltechs product will help the end user migrate to the ARM platform with maximum efficiency.

Customers and Channels

Our product is geared towards data center owners and cloud providers. By switching over to servers with greater power-efficiency, our clients will be able to decrease their operational costs by as much as 80% without having to make any changes to their existing software. The result is that with Eltechs’ solution, data centers and cloud providers will see a decrease in costs, with no change to the services they provide to their end users.

We aim to work with consulting firms and hardware vendors as our main channels for reaching clients. We believe they will see the value in our product as a tool for expanding the market for ARM-based servers, and consequently, increasing their customer base.

Skolkovo Affiliation

Eltechs, Inc. has been a Skolkovo resident companysince 2012. Being a part of Skolkovo community brings a numbe r of benefits, including exemption from profit taxes and VAT, along with a social tax reduction. In addition, our company is entitled to special customs treatment status, and we enjoy use of the services of the Skolkovo IT Cluster (business development support) as well as the services of the other departments of the Skolkovo Foundation.